PRIVATE / PROPRIETARY Issued by: Bettina Wolff Approved by: Halvar Jonzon, Leif Berntsson, Svante Mogefors, ASPP/ASM-Core-Team 01-May-2005 Control Level

PRIVATE / PROPRIETARY

Issued by: Bettina Wolff

Approved by: Halvar Jonzon, Leif Berntsson, Svante Mogefors, ASPP/ASM-Core-Team

01-May-2005

Control Level Definition (=CLD) Version 1.0

2PRIVATE / PROPRIETARY

ALV Internal

External

APP

Suppliers

CLD in ASPP and ASM

Autoliv Product

Development System (APDS)

Autoliv Production

System (APS)

Autoliv Sourcing andPurchasing Process

(ASPP)

SupplierManual (ASM)

Autoliv-Employees

AGI

Interface/Medium

CLD=Control Level definition

CLD is an ALV-internal ASPP-procedure, which is executed by Autoliv and just for information purpose also published to our

suppliers through ASM.!


Project PurchasingAdvanced Sourcing Serial Purchasing & Management

Commodity Purchasing

ASPP Updates and Revision Status

Where is CLD found in ASPP ?

CLD


Where is CLD found in ASM ?

CLD


Control Level Definition

What is Control Level Definition (CLD)? a rating method to identify areas of riskareas of risk

associated with the launch of any project in order to prioritize Autoliv focus of the S-APQP effort.



Purpose of CLD? assess and rate the combinedcombined risk of:

the selected serial suppliers the supplier product the supplier process



Why do we need to execute CLD? to raise awareness of high risk situationshigh risk situations to prioritize resources to manage high risk high risk

situationssituations for Autoliv Determines the amount of resource required Determine Follow up method and frequency

Standard Procedure



Who does CLD? Project Team

Purchasing Project Coordinator/Buyer (responsible to lead the efforts)

Supplier Quality Advanced Design Engineer *) Process Engineer Others as required

*) Note: When the project contains elements of design that are controlled by DA or CDA or CPA, these individuals shall determine if the supplier product is to be defined as CLD 4 product or not. See next slide for an example of responsibility.

(CDA - Corporate Design Authority - is an individual Team who is appointed to a specific product type or to a product family. CPA - Corporate Product Authority - is an individual Team who is appointed to same customer products delivered to multiple customer locations and/or produced at multiple ALV locations. See further AS 115)


Example of CDA, CPA and Local APDS Project Team involvement in a customer product

Top Assemblye.g. Seatbelt

Component 1e.g. Webbing

Component 2e.g. Tongue

Customer project owned and approved by Project Team Leader(PTL)

Also approved by CPA

Sub-Assembly e.g. Retractor

Component 4e.g. Spindle

Component 3e.g. Frame

Owned and approved by CDA

Imp

lemen

t Glo

bal S

trategy

Define Interaction & Split Responsibility



When is CLD performed? after supplier selection prior to S-APQP in accordance with APDS (normally in

phase 1)


Control Level Definition General process

Step 1 : Determine if the supplier product is of the category of products defined as a “CLD 4 -supplier product” ( see next slide ) If “Yes ==> CLD level is determined as CLD 4

If “No ==> Go to step 2 Step 2 : Answer the questions about “Key

definitions” : Current or New Supplier ? Current or New Technology/Process ? Current or New Supplier Product Design ?

Step 3: Use the CLD Matrix to determine CLD level.



Step1: Determine, if product/component is a “CLD-4-supplier product:

Question: What is a “CLD 4 - supplier product” ?

A CLD 4- supplier product is a component which has a critical impact on Autoliv product performance in it´s product application (as defined by CDA/CPA and/or local project team and CDA/CPA and/or project team experience shows that

thorough follow-up during the APQP process is of outmost importance in order to reduce risk (product performance, project, etc).

For this category of supplier products, CLD 4 is the default level.



Step1 (continue):

Examples for CLD-4-supplier products:

# Generant# Initiator# Accelerometer# Inflator# MGG



Step 2 : Determine key definitions required to establish CLD:

a) Supplier : Current or New ? current supplier are any serial supplier doing

business in the current ALV business region ( i.e.: ANA, ASA, AEU, AAP, AJP, ALE)

new supplier site is “New supplier”



Step 2 (continue): Determine key definitions required to establish CLD:

b) Technology/Process : Current or New ? new technology means new to supplier. “new” indicates a significant change significant change in, raw

material, sub supplier, machines, tool concept, process steps/sequence, or testing procedure to produce like or similar components.



Step 2 (continue): Determine key definitions required to establish CLD:

c) Supplier Product Design : Current or New ?

New means: any significantany significant changechange to form, fit or function

of the supplier product significant changesignificant change to an existing raw material new raw material



Additional consideration to determine CLD

Normal/Compressed Timing time is compressed if there is a need to expedite

resources required to meet a targeted time. the CLD level will be increased by the project

team, if the team has the impression that additional attention/support of ALV will help the supplier to meet the targeted timeline. examples could be production equipment, tooling, raw

material availability or personnel availability past due actions will not be cause for redefining of CLD


CLD Determination Matrix:

Production facility:

Project name:

P/N Name New Current New Current New Current CLDBOM Supplier Technology/Process Design


Step 3: Use the CLD Matrix to determine CLD level:


Control Level Definition Step 3 (continue): Using the “CLD determination matrix”:

a) Put “X” in relevant columns of “CLD-determination matrix” according to step 2.

b) CLD-Determination: CLD Level # 1

No (0) “X” in the column “New supplier”, “New technology/process”or “New Design”

CLD Level # 2 One (1) “X” in the column “New supplier”, “New technology/process”or “New

Design”

CLD Level # 3 Two (2) or three (3) “X” in the column “New supplier”, “New

technology/process”or “New Design”



Step 3 (continue):

Summary / Control Level definition Table:

0 CLD 11 CLD 22 CLD 33 CLD 3

Number of "X" in a "new" column

CLD



What are the Control LevelsControl Levels (CLD 1 - 4) ?

and

What are the requirements within these levels ?



No. Requirements CLD 1 CLD 2 CLD 3 CLD 4

1. S-APQP: YES YES YES YES

1.1 -S-APQP-submission YES YES YES YES

-S-APQP reviews NO YES N/A N/A

1.2 -S-APQP review at supplier NO NO YES YES

1.3 -S-APQP-element: AS2-Audit NO NO NO YES

2. Contract Review NO YES YES YES

3. Production-Trial-Runs YES YES YES YES

3.1 -Documentation Submission NO YES YES YES

3.2 -Autoliv participation NO NO YES YES

ASM = Autoliv Supplier Manual YES = Required NO = Not required N/A = Not Applicable

Participation at Production-Trial-Runs at supplier site.

Reference: ASM-S-APQP-template

According to defined submission frequency.

Autoliv/Supplier meetings/tel.conf.

Review meetings at supplier site.

Project specific AS2-Process Audit.

Mandatory use of Contract Review-template. Reference: ASM-Contract Review-template.

Reference: ASM-Production-Trial-Run Standard

Trial-Run-Documentation on defined templates. Reference: ASM-Production-Trial-Run Standard

Minimum requirements related to defined CLD

Comment(s)



Additional consideration to CLD 1 - 3

AS-2 Audit or AS 69 Audit may be required in all or part at any level on

the CLD matrix


Examples for Control Level Definition


Example - Airbag

Example Situation Driver Airbag – Mfg by AWM – A Mexican Steering

Wheel Facility New Autoliv Customer New Cover Design

Existing Supplier, New technology New Emblem

Existing Yellow Supplier Existing aluminum rivet

Existing Supplier 1st (New) Driver OPW cushion

Existing Green Supplier, New technology


Example - Airbag CLD Determination Matrix

Production facility: AWM

Project name:Driver airbag

P/N Name New Current New Current New Current CLD1234 Cover X X X 32345 Rivet X X X 13456 Cushion X X X 34567 Emblem X X X 2

BOM Supplier Technology/Process Design


Example - Seat Belt

Situation Rear Center Seat Belt – Mfg by KLE Facility New Autoliv Customer Existing Technology Webbing – New Color for VOAAccording to CLD determination matrix == > CLD 2(see also next slide)

Expedited Lead Time – 12 weeks SOP

Project Team determined attention/support of ALV will help the supplier to meet the targeted timeline CLD level to increased by the project team -Team decision : CLD 3


Example - Seat BeltCLD Determination Matrix

Production facility: KLE

Project name:Seat belt , rear center

P/N Name New Current New Current New Current CLD5678 Webbing x x x 2

BOM Supplier Technology/Process Design

Documents

PRIVATE / PROPRIETARY Issued by: Bettina Wolff Approved by: Halvar Jonzon, Leif Berntsson, Svante Mogefors, ASPP/ASM-Core-Team 01-May-2005 Control Level